Investors who bought and resold homes in Mt. Washington and Highland Park reaped some of the largest gains last year in a ranking of the nation’s hottest neighborhoods for flippers. The analysis of 2013 sales by Redfin, the nationwide brokerage firm, said that the average price gain of a flip in Mt. Washington (and a chunk of Glassell Park) was $236,300, which earned it the No. 5 rank on the nationwide list. Meanwhile, Highland Park ended up in No. 12 spot, with an average gain of $191,400 (these are price gains, not profits).
The two Northeast L.A. neighborhoods trailed Mid City – ranked No. 4 with an average gain of $239,900, according to Redfin. The nation’s hottest neighborhood for flippers was Petworth in Washington, D.C., where the average gain from a flip was $312,400. Said the report:
While 2013 proved lucrative for flippers, flipping activity (number of homes flipped) generally decreased across most of the major U.S. markets. L.A., however, appears to be stable with about 8,500 flips each year from 2010 – 2013.
The Redfin results may not surprise the house hunters who have been out bid by all-cash offers made by flippers and other investors.
Average Gain: $236,300
Pre-Flip Price $342,000
Post-Flip Price $578,200
Average Gain: $191,400
Pre-Flip Price: $310,600
Post-Flip Price: $502,000